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According to Coinglass data, Solana‘s (SOL) double-digit price increase in the last 24 hours resulted in the liquidation of some short positions in the futures market. At the time of writing, SOL had risen by 11% in just 24 hours to a value of $145.12.
Momentum Builds in SOL
CoinMarketCap data shows that SOL was the only cryptocurrency among the top five by market value to record double-digit gains in the last 24 hours, ahead of Bitcoin‘s halving event. Liquidations can occur in a token’s derivatives market when an investor does not have sufficient funds to maintain their position, forcing a closure. Short liquidations happen when a token’s value suddenly increases, and investors with positions betting on a price drop are forced to exit their positions.
According to Coinglass, SOL’s short-term liquidations reached $13 million in 24 hours, while long liquidations amounted to $9 million. The daily chart analysis of SOL’s price movements suggests that the recent double-digit price increase could be short-lived. Indeed, the bearish sentiment among market participants continues to overshadow the bullish trend. The popular altcoin SOL’s SAR indicator dots, at the time of writing, were positioned above the SOL price, and have been since April 5.
Current Data on Solana
The indicator identifies potential trend directions and reversals. When dots are above a token’s price, it is said that the market is declining. This situation may indicate that the token’s price is falling and the downward trend could continue. SOL’s MACD line analysis revealed that this crypto signal is below the zero lines. This situation shows that the token’s short moving average is below its long-term moving average.
This transition, which occurred on March 22, indicated a shift from a bullish to a bearish momentum and confirmed that SOL’s selling activity had been accumulating since then. Despite SOL’s long-term price decline, the Chaikin Money Flow (CMF) continued to rise. This could indicate a bullish trend. The mentioned situation means that, despite the price drop, the token still has significant buying interest. Larger market participants may be accumulating SOL with the expectation of a turnaround despite the price drop.
